Budget 2026 Should Prioritise Cold Chain to Cut Wastage and Strengthen Healthcare Readiness

Sameer Varma, Executive Director, ColdStar Logistics said, “In Budget 2026, we would like to see cold chain treated as a strategic ‘infrastructure for essentials’, with a sharper policy push that directly improves reliability, lowers wastage, and strengthens healthcare readiness. Some suggestion on how we can achieve this are:
– Expanding and simplifying funding windows under PMKSY/Integrated Cold Chain components and complementing them with blended finance/credit enhancement to crowd in private investment
– Creating incentives for energy-efficient refrigeration and thermal-storage retrofits to reduce power-intensity and improve uptime; and
– Enabling compliance-grade cold distribution for pharmaceuticals through harmonised temperature/traceability standards.
We also hope the government, in consultation with the GST Council, considers rate rationalisation or targeted relief for critical cold-chain assets to accelerate capacity creation, because every rupee saved in logistics cost, compounds into better food security, faster commerce, and safer medicine delivery. Recognising modern warehousing and cold chain as infrastructure rather than a real estate play, investing in logistics-specific skilling of labour and easing regulatory compliance to improve cash flow, are other initiatives that can propel the industry forward. A move to rationalise 18% GST on cold-chain assets such as refrigerated motor vehicles and refrigerating/freezing equipment, would also be welcome.  Last year’s Union Budget (2025–26) took positive steps toward overall supply-chain efficiency. However, targeted interventions to reduce end-to-end cold-chain friction for temperature-controlled supply chains of the critical to quick commerce/retail, food, and pharmaceuticals sectors, were some misses.”